Full Text of SB0214 94th General Assembly
SB0214eng 94TH GENERAL ASSEMBLY
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| AN ACT concerning warehouses.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Grain Code is amended by changing Sections | 5 |
| 20-20, 25-20, 30-5, 30-15, and 35-5 as follows:
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| (240 ILCS 40/20-20)
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| Sec. 20-20. Liquidation expenses ; Asset Preservation | 8 |
| Account .
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| (a) The Trustee shall pay from the Trust Account all
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| reasonable expenses incurred by the trustee on or after the | 11 |
| date of failure in
reference to seizing, preserving, and | 12 |
| liquidating the grain assets,
equity assets, collateral, and | 13 |
| guarantees of or relating to a failed
licensee,
including, but | 14 |
| not limited to, the hiring of temporary field
personnel, | 15 |
| equipment rental, auction expenses, mandatory commodity | 16 |
| check-offs,
and clerical
expenses.
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| (b) Except as to claimants holding valid claims, any
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| outstanding indebtedness of a failed licensee that has accrued
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| before the date of failure shall not be paid by the Trustee and
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| shall represent a separate cause of action of the creditor | 21 |
| against
the failed licensee.
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| (c) The Trustee shall report all expenditures paid from the
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| Trust Account to the Corporation at least annually.
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| (d) To the extent assets are available under subsection (g) | 25 |
| of Section
25-20 and upon presentation of documentation | 26 |
| satisfactory to the Trustee, the
Trustee shall transfer from | 27 |
| the Trust Account to the Regulatory Fund an amount
not to | 28 |
| exceed the expenses incurred by the Department in performance | 29 |
| of its
duties under Article 20 of this Code, in reference to | 30 |
| the failed licensee. | 31 |
| (e) The Department shall establish and maintain an Asset | 32 |
| Preservation Account as provided in Section 205-410 of the |
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| Department of Agriculture Law of the Civil Administrative Code | 2 |
| of Illinois that shall contain a maximum of $50,000. The funds | 3 |
| in the Asset Preservation Account are to be used solely by the | 4 |
| Trustee for the reasonable expenses incurred by the Department | 5 |
| on or after the date of failure for preserving and liquidating | 6 |
| grain assets, equity assets, collateral, and guarantees of or | 7 |
| relating to a failed licensee, provided that the Department has | 8 |
| made a determination that the benefit of preserving and | 9 |
| liquidating the grain assets, equity assets, collateral, and | 10 |
| guarantees exceeds the anticipated costs of the preservation | 11 |
| and liquidation, and only to the extent that all liquid and | 12 |
| available moneys in the Grain Indemnity Trust Account relating | 13 |
| to the particular failure have been exhausted. The Asset | 14 |
| Preservation Account shall be funded by the income earned on | 15 |
| the assets in the Fund. The income must be transferred to the | 16 |
| Asset Preservation Account on a monthly basis, within 10 | 17 |
| business days after the end of each calendar month, and to the | 18 |
| extent necessary to maintain the $50,000 balance. The Trustee, | 19 |
| or his or her designee, must file a report of all receipts by | 20 |
| and disbursements from the Asset Preservation Account with the | 21 |
| Board prior to each meeting of the Board.
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| (Source: P.A. 93-225, eff. 7-21-03.)
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| (240 ILCS 40/25-20)
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| Sec. 25-20. Priorities and repayments.
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| (a) All valid claims shall be paid from the Trust Account, | 26 |
| as
provided in Section 25-10, first from the proceeds
realized | 27 |
| from
liquidation of and collection upon the grain assets | 28 |
| relating to the failed
licensee, as to warehouse
claimants, and | 29 |
| the equity assets as to a secured party or lien holder who has
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| consented to the Department liquidating and collecting upon the | 31 |
| equity asset as
set forth in subsection (f) of Section 20-15, | 32 |
| and the remaining equity assets,
collateral, and guarantees
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| relating to the failed licensee, as to grain dealer claimants.
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| (b) If the proceeds realized from liquidation of and | 35 |
| collection upon the
grain assets, equity assets, collateral, |
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| and guarantees relating to the failed
licensee are insufficient | 2 |
| to pay all valid claims as provided in
Section 25-10
and | 3 |
| subsection (a) of this Section as payment on those claims | 4 |
| becomes due, the
Director shall request from the Board | 5 |
| sufficient funds to be transferred from
the Fund to the Trust | 6 |
| Account to pay the balance owed to claimants as
determined | 7 |
| under Section 25-10. If a request is made by the Director for a
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| transfer of funds to the Trust Account from the Fund, the Board | 9 |
| shall act on
that request within 25 days after the date of that | 10 |
| request. Once moneys are
transferred from the Fund to the Trust | 11 |
| Account, the Director shall pay the
balance owed to claimants | 12 |
| in accordance with Section 25-10.
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| (c) Net proceeds from liquidation of grain assets as set | 14 |
| forth in subsection
(a) of Section 25-10 received by the | 15 |
| Department, to the extent not already paid
to warehouse | 16 |
| claimants, shall be prorated among the fund and all
warehouse | 17 |
| claimants who have not had their valid claims paid in full.
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| (1) The pro rata distribution to the Fund shall be | 19 |
| based upon the total
amount of valid claims of all | 20 |
| warehouse claimants who have had
their valid
claims paid in | 21 |
| full. The pro rata distribution to each warehouse
claimant | 22 |
| who
has not had his or her valid claims paid in full shall | 23 |
| be based upon the total
amount of that claimant's original | 24 |
| valid claims.
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| (2) If the net proceeds from the liquidation of grain | 26 |
| assets as set forth
in subsection (a) of Section 25-10 | 27 |
| exceed all amounts needed to satisfy all
valid claims filed | 28 |
| by warehouse claimants, the balance remaining
shall be paid
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| into the Trust Account or as set forth in subsection (h).
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| (d) Subject to subsections (c) and (h):
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| (1) The proceeds realized from liquidation of and
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| collection upon the grain assets, equity assets, | 33 |
| collateral,
and guarantees relating to the failed licensee | 34 |
| or any other
assets relating to the failed licensee that | 35 |
| are received by
the Department, to the extent not already | 36 |
| paid to claimants,
shall be first used to repay the Fund |
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| for moneys transferred
to the Trust Account.
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| (2) After the Fund is repaid in full for the moneys
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| transferred from it to pay the valid claims in reference to | 4 |
| a
failed licensee, any remaining proceeds realized from
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| liquidation of and collection upon the grain assets, equity
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| assets, collateral, and guarantees relating to the failed
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| licensee thereafter received by the Department shall be
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| prorated to the claimants holding valid claims who have not
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| received 100% of the amount of their valid claims based | 10 |
| upon the
unpaid amount of their valid claims.
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| (e) After all claimants have received 100% of the amount of | 12 |
| their
valid
claims, to the extent moneys are available interest | 13 |
| at the rate of 6% per annum
shall be assessed and paid to the | 14 |
| Fund on all moneys transferred from the Fund
to the Trust | 15 |
| Account.
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| (f) After the Fund is paid the interest as provided in | 17 |
| subsection (e) of
this Section, then those claims barred and | 18 |
| disallowed under items (1) and (2) of subsection (g) of
Section | 19 |
| 25-10 shall be paid on a pro rata basis only to the extent that | 20 |
| moneys
are available.
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| (g) Once all claims become valid claims and have been paid | 22 |
| in
full and all interest as provided in subsection (e) of this | 23 |
| Section is paid in
full, and all claims are paid in full under | 24 |
| subsection (f), and all payments are made as required under | 25 |
| Section 20-20(d),
any remaining grain assets, equity assets, | 26 |
| collateral, and
guarantees, and the proceeds realized from | 27 |
| liquidation of and
collection upon the grain assets, equity | 28 |
| assets, collateral, and
guarantees relating to the failed | 29 |
| licensee,
shall be returned to the
failed licensee or its | 30 |
| assignee, or as otherwise directed by a
court of competent | 31 |
| jurisdiction.
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| (h) If amounts in the Fund are insufficient to
pay all | 33 |
| valid claims,
the Corporation shall transfer from the Reserve | 34 |
| Fund to the Fund amounts
sufficient to satisfy the valid | 35 |
| claims, and to the extent the amounts thus
transferred are | 36 |
| insufficient to pay all valid claims,
the General Assembly |
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| shall appropriate to the
Corporation amounts sufficient to | 2 |
| satisfy the valid claims. If
for any reason the General | 3 |
| Assembly fails to make an
appropriation to satisfy outstanding | 4 |
| valid claims, this Code
constitutes an irrevocable and | 5 |
| continuing appropriation of all
amounts necessary for that | 6 |
| purpose and the irrevocable and
continuing authority for and | 7 |
| direction to the State Comptroller and
to the State Treasurer | 8 |
| to make the necessary transfers and
disbursements from the | 9 |
| revenues and funds of the State for that
purpose. Subject to | 10 |
| payments to warehouse claimants as set forth in
subsection (c) | 11 |
| of Section 25-20, the State shall be first reimbursed, and
the | 12 |
| Reserve Fund shall thereafter be reimbursed to the extent | 13 |
| needed to
restore the Reserve Fund to a level of $2,000,000 of | 14 |
| principal (not including
income on the assets in the Reserve | 15 |
| Fund)
as soon as funds become available for any amounts paid | 16 |
| under subsection (g) of
this
Section upon replenishment of the | 17 |
| Fund from assessments under subsections
(d), (f), and (g) of | 18 |
| Section 5-30 and collection upon grain assets, equity
assets,
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| collateral, and guarantees relating to the failed licensee.
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| (i) The Department shall have those rights of equitable | 21 |
| subrogation which
may result from a claimant receiving from the | 22 |
| Fund payment in full of the
obligations of the failed licensee | 23 |
| to the claimant.
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| (Source: P.A. 93-225, eff. 7-21-03.)
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| (240 ILCS 40/30-5)
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| Sec. 30-5. Illinois Grain Insurance Corporation.
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| (a) The Corporation is a political subdivision, body | 28 |
| politic,
and public corporation. The governing powers of the | 29 |
| Corporation
are vested in the Board of Directors composed of | 30 |
| the Director,
who shall personally serve as president; the | 31 |
| Attorney General or
his or her designee, who shall serve as | 32 |
| secretary; the State Treasurer or
his or her designee, who | 33 |
| shall serve as treasurer; the Director of the
Department of | 34 |
| Insurance or his or her designee; and the chief fiscal officer
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| of the Department.
Three members of the Board
constitute a
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| quorum at any meeting of the Board, and the affirmative vote of
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| 3 members is necessary for any action taken by the
Board at a | 3 |
| meeting, except that a lesser number may adjourn a
meeting from | 4 |
| time to time. A vacancy in the membership of the
Board does not | 5 |
| impair the right of a quorum to exercise all the rights
and | 6 |
| perform all the duties of the Board and Corporation.
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| (b) The Corporation has the following powers, together
with | 8 |
| all powers incidental or necessary to the discharge of those | 9 |
| powers in
corporate form:
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| (1) To have perpetual succession by its corporate name
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| as a corporate body.
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| (2) To adopt, alter, and repeal bylaws, not
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| inconsistent with the provisions of this Code, for the | 14 |
| regulation and conduct
of its affairs and business.
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| (3) To adopt and make use of a corporate seal and to
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| alter the seal at pleasure.
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| (4) To avail itself of the use of information, | 18 |
| services,
facilities, and employees of the State of | 19 |
| Illinois in carrying
out the provisions of this Code.
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| (5) To receive funds, printer registration fees, and | 21 |
| penalties
assessed by the Department under
this Code.
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| (6) To administer the Fund by investing funds of the
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| Corporation that the Board may determine are not presently
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| needed for its corporate purposes.
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| (7) To receive funds from the Trust Account for deposit
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| into the Fund.
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| (8) Upon the request of the Director, to make payment | 28 |
| from the Fund and
the Reserve Fund to the
Trust Account | 29 |
| when payment is necessary to compensate claimants in | 30 |
| accordance
with the provisions of Section 25-20 or for | 31 |
| payment of refunds to licensees in
accordance with the | 32 |
| provisions of this Code.
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| (9) To authorize, receive, and disburse funds by | 34 |
| electronic means.
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| (10) To
make any inquiry and investigation deemed | 36 |
| appropriate with regard to the
failure of any
licensee, |
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| including but not limited to analyzing the causes of and | 2 |
| reasons for
the failure; determining the adequacy and | 3 |
| accuracy of Department examinations
and other regulatory | 4 |
| measures with regard to the failed licensee; and analyzing
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| whether the handling of the liquidation and payment process | 6 |
| by the Department
was done in a manner that served the | 7 |
| interests of those persons whose interests
this Code was | 8 |
| designed to protect.
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| (11) To have those powers that are necessary or
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| appropriate for the exercise of the powers specifically
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| conferred upon the Corporation and all incidental powers
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| that are customary in corporations. | 13 |
| (12) To make payments from the Fund to the Asset | 14 |
| Preservation Account in accordance with Section 20-20(e) | 15 |
| of this Code.
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| (c) A committee of advisors shall be created to provide | 17 |
| technical
assistance
and advice and make recommendations to the | 18 |
| Board. The advisory committee shall
assist the board in | 19 |
| understanding pertinent developments in grain production
and | 20 |
| marketing and the grain industry. The advisory committee shall | 21 |
| be composed
of one grain producer designated by the Illinois | 22 |
| Farm Bureau; one grain
producer designated by the Illinois | 23 |
| Farmers Union; one grain producer
designated by the Illinois | 24 |
| Corn Growers Association; one grain producer
designated by the | 25 |
| Illinois Soybean Association;
2 representatives of the grain | 26 |
| industry, designated by the Grain and Feed
Association of
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| Illinois; and 2 representatives of the lending industry, one | 28 |
| each designated by
the Illinois
Bankers Association and the | 29 |
| Community Bankers of Illinois.
Members of the advisory | 30 |
| committee shall serve terms of 2 years from the date of
their | 31 |
| designation. Members of the advisory committee shall have the | 32 |
| right to
attend all meetings of the Board and participate in | 33 |
| Board discussions, but
shall not have a vote.
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| (Source: P.A. 93-225, eff. 7-21-03.)
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| (240 ILCS 40/30-15)
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| Sec. 30-15. Investments of the Fund.
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| (a) All assessments by the Department under Section
5-30 | 3 |
| shall be held by the Corporation in the Fund.
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| (b) Subject to applicable law, the assets of the Fund may | 5 |
| be
invested and reinvested at the discretion of the | 6 |
| Corporation, and
the income from these investments shall be | 7 |
| deposited to the credit
of the Fund and shall be available for | 8 |
| the same purposes as all
other assets of the Fund.
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| (c) Except as provided in Section 20-20(e), the
The assets | 10 |
| of the Fund shall not be available for any
purpose other than | 11 |
| the payment of valid claims under this
Code and the payment of | 12 |
| refunds of amounts that the Board
determines have been | 13 |
| inappropriately paid into the Fund, and may
not be transferred | 14 |
| to any other fund, other than the Trust Account
when necessary | 15 |
| to pay valid claims under this Code or to pay
refunds | 16 |
| authorized by the Board.
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| (Source: P.A. 89-287, eff. 1-1-96.)
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| (240 ILCS 40/35-5)
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| Sec. 35-5. Regulatory Fund.
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| (a) The Regulatory Fund is created as a trust fund in the | 21 |
| State Treasury.
The Regulatory Fund shall receive license, | 22 |
| certificate, and extension fees
under Sections 5-10, 5-15, and | 23 |
| 5-20 and funds under subsection (g) of Section
25-20 and shall | 24 |
| pay expenses as set forth in this Article 35.
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| (b) Any funds received by the Director under Sections 5-10, | 26 |
| 5-15, and 5-20
and funds disbursed for deposit to the | 27 |
| Regulatory Fund under subsection (g) of
Section 25-20 shall be | 28 |
| deposited with the Treasurer as ex officio custodian and
held | 29 |
| separate and apart from any public money of this State, with | 30 |
| interest
accruing on moneys in the Regulatory
Fund deposited | 31 |
| into the Regulatory Fund. Disbursement from the Fund for
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| expenses as set forth in this Article 35 shall be by voucher | 33 |
| ordered by the
Director, accompanied by documentation | 34 |
| satisfactory to the Treasurer and the
Comptroller supporting | 35 |
| the payment warrant drawn by the Comptroller and
countersigned |
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| by the Treasurer. Moneys in the Regulatory Fund shall not be
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| subject to
appropriation by the General Assembly but shall be | 3 |
| subject to audit by the
Auditor General. Interest earned on | 4 |
| moneys deposited into the Regulatory Fund
shall be deposited | 5 |
| into the Regulatory Fund.
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| (c) Fees deposited into the Regulatory Fund under Sections | 7 |
| 5-10, 5-15, and
5-20
shall be expended only for the following | 8 |
| program expenses of the Department;
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| (1) Implementation and monitoring of programs of the | 10 |
| Department solely
under this Code, including an electronic | 11 |
| warehouse receipt program.
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| (2) Employment or engagement of certified public | 13 |
| accountants to assist in
oversight and regulation of | 14 |
| licensees in the course of an intermediate or
advanced | 15 |
| examination under Section 1-15.
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| (3) Training and education of examiners and other | 17 |
| Department employees
in reference to Department programs | 18 |
| established to implement the Department's
duties solely | 19 |
| under the Code.
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| (d) Any expenses incurred by the Department in performance | 21 |
| of its duties
under Article 20 of the Code shall be reimbursed | 22 |
| to the Department out of the
net assets of a liquidation to the | 23 |
| extent available under subsection (g)
(q) of
Section 25-20 and | 24 |
| shall be
deposited into the Regulatory Fund and shall be | 25 |
| expended solely for program
expenses under the Code.
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| (Source: P.A. 93-225, eff. 7-21-03.)
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